Adoption of Value Engineering in the Affordable Housing Initiative – A Review

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 09 Issue: 03 | Mar 2022 www.irjet.net p-ISSN: 2395-0072
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Adoption of Value Engineering in the Affordable Housing Initiative – A
Review
Mayankkumar M. Chaudhari1, Dr. J. R. Pitroda2, Prof. A.N. Bhavsar3
1M.Tech. (Civil) Construction Engineering and Management, BVM Engineering College, Vallabh Vidyanagar,
Gujarat, India
2Associate Professor, PG Coordinator, Construction Engineering and Management, Civil Engineering Department,
BVM Engineering College, Vallabh Vidyanagar, Gujarat, India
3Associate Professor, Civil Engineering Department, BVM Engineering College, Vallabh Vidyanagar, Gujarat, India
---------------------------------------------------------------------***---------------------------------------------------------------------
Abstract - Indian authorities are dealing with a huge issue
in the shape of urbanization., which has led to unaffordable
housing and poor dense urban conditions. Each person's
dream is to have their own home. One of the major issues that
emerging countries face is providingaffordablehousingforall
citizens. India is now witnessing a severe housing crisis. Of
these, more than 90% shortage relates toEWS(“Economically
Weaker Section”) and LIG (“Low Income Groups”) homes. The
ideal of homeownership has become a challenging reality,
particularly for low- andmiddle-incomefamilies. TheNationis
on a strive to meet all of society's housing affordability until
the year 2022. The countrywide demand for materials and
energy is predicted to be high due to the construction of
thousands of homes. Substitute materials, construction
practices, and construction ideas must all be evaluated in
order to reduce overall material and energy use. This paper
explores the use of value engineering to bridge affordable
housing system gaps in terms of achieving housing for all.
Key Words: Affordable Housing, Challenges, Construction,
Government, Housing crisis, Economical Weaker Section,
Low Income Group, Value Engineering
1.INTRODUCTION
The shelter has become one of the 3 main necessities, along
with eating and other necessities. Yet after Seventy-
five years of independence, India's housing situation
continues to deteriorate, specifically among the poorer
classes. The rapid development of the urban population has
resulted in a severe housing crisis and unacceptable
metropolitan lifestyle conditions. The never-ending stream
of immigrants from the countryside to the areas in search of
jobs is causing urban unaffordable housing. In the 20th
century, the rate of urbanization increased dramatically.
Metropolitan areas havecongestedslumsasa resultofurban
sprawl. Slums are home to a large percentage of the
underprivileged. In India, affordability is a serious issue,
especially in cities. There are significantlycheaperdwellings
for them in slums, but they are incredibly unhealthy in
regards to hygiene and other physical infrastructure, and
there are dwellings in metropolises with all of the basic
accessories, but they are beyond of reach for individuals on
the LIG and EWS. We must acknowledge that persons on the
LIG and EWS have equal opportunity to housing amenities.
Chart-1 shows that EWS and LIG groups cannot acquire
House due to the high house price-to-income ratio.
Chart -1: The proportion of a home's price to a family's
annual income., 2010
Houses that fulfil the necessities of households whose
budgets are insufficient to allow them to afford acceptable
housing in the market are quite often referred to as
affordable housing. Several efforts have been made around
the world to provide inexpensive housing solutions for
everyone. By 2022, the Indian government had announced
the mission of 'Housing for All.' The Central Governmenthas
initiated comprehensive scheme named "Pradhan Mantri
Awas Yojana - Housing for All”, MukhyamantriAwasYojana”
in order to attain this vision. The utilization of relatively
economical materials, innovative building processes,
ecological strategies, and other methods can help attain this
affordability. The following Chart-2 Showing rising prices of
affordable housing in India.
The foundation of value engineering is functional analysis,
which is a technique of conceptualizing and management
technology that aims to enhance property value and
resource utilization. Its goal is to achievethegreatestoverall
benefit by reliably realizing the product's essential function

and the user's required to function at the cheapest life cycle
cost.
Chart -2: Housing Prices in different countries
1.1 Need of Study
1. People have been forced to live in slums with
deteriorating living conditions as a result of rapid
urbanization and increasing housing costs.
2. The countrywide demand for materials and energy
is predicted to be high due to the construction of
thousands of homes.
3. Existing affordable housing prospects in Gujarat
(India) are unsatisfactory in terms of quality and
sustainability, resultinginhousingscarcity.Tosolve
these challenges, a preplanning study is required.
1.1 Objective of Study
The study's objectives are to explore a variety of
literature, examine the current state of affordablehousing in
Gujarat (India), and understand value engineering
concepts in an affordable housing project for EWS and LIG
participants in India.
2. UTILIZATION OF VALUE ENGINEERING IN
RESEARCH
The following evaluation of the literature is centered on the
use of value engineering in several constructions’ multiple
disciplines.
2.1 Utilization of Value Engineering in
Transportation Project
Tung-Tsan Chen et al. (2011) The feasibilityofdoingvalue
engineering is investigated using a VE analysis of second-
round collector roadwork in Taipei port. The FDM method
was utilized to pick 10 assessment elements from a total of
24 parameters referenced in the relevant literature. The
overall evaluation was analyzed using the Fuzzy Analytic
Hierarchy Process.Intheappraisal ofvaluemanagement,the
Fuzzy Delphi and AHP methods can be useful. The detailed
design analysis will be more possible as the project grows in
size.
Rudra P. Pradhan et al. (2014) The impact
of infrastructure on Economicgrowthandpovertyreduction
from 1970 to 2010 is examined. The research establishes
a bidirectional relationshipbetweenthe transportsector and
wealth creation using the VECM (“Vector Error Correction
Model”). The strengthening of road infrastructure, together
with enhanced economic growth, will propel India's
economy to new heights because 1) a good road helps
commodities to be carried to the marketplace in much less
time 2) the authority can implement a toll fee, which adds to
the government's wealth 3) As the economy rises, so does
people's personal income also increase.Byattractingprivate
investment, infrastructure can operate as a magnet for area
economic growth, resulting in an increase in total GDP.
Renata Schneiderova Heralova (2016) Highway
construction is frequently criticized forthreemajorreasons.
First, they fail to meet aims; second, they fail to deliver
projects in a timely manner; and third, expenditures exceed
their budgetary constraints. In transportation construction,
the design stage is critical for financial control.Byemploying
VE approaches throughout the design phase of road
construction help to reduce cost and the construction
timeframe, increasing the probability of return on the
project. The job plan is the key for describing the necessary
tasks and selecting one of the most cost-effective function
combinations to perform it. Benefits of the VE job plan
include: resolving technical hurdles in complicated projects,
gaining extra specific capabilities, making optimal use of
resources, improvingproject efficiencyandfinancial savings,
and increasing the value of a projectbyseparatingnecessary
from unneeded functions.
2.2 Impact of Value Engineering in Infrastructure
Project
Mohammed Ali Berawi et al. (2014) value of
infrastructure projects has a positive relationship with the
economy, the study examines value creation in project
development by adding new functions and evaluating the
value for money of two mega infrastructure projects in
Indonesia: The Sunda Strait Bridge (SSB) and the Soekarno-
Hatta Rail Link (SHIARL). FAST diagram is use for idea
generation tool. A questionnaire is delivered to the project's
connected stakeholders both online and offline. The
questionnaire survey took a month to complete, with 35
responses for SSB and 32 for SHIARL. Following the
completion of the questionnaire analysis, a focus group
discussion (FGD) was held to get additional feedback from
various stakeholders on the findings. Finally, value for
money is attained for both proposed project development

and life cycle cost analysis, which results in a positive NPV
and significant IRR.
Eng. Ahmed M. Selim et al. (2017) Infrastructure creation
is considered one of the most important aspectsofachieving
livability, according to a World Bank report from 2015.
Investments were made projectswill reach$9trilliondollars
worldwide in the next five years, through 2020. described
the definition of VE, its benefits, and how to put it into effect
in different steps of the Job Plan (6 phase) practice.
Infrastructure ventures have a unique nature in terms of
scale, diversity, and huge capital costs; hence most
infrastructure projects employ the BOT System since PPP
has several merits such as avoiding governmentfundingand
pooling identified risk with the private sector. VE is critical
in infrastructure (PPP) developmentstodelivergoodservice
at an affordable cost because all these developments can be
extremely expensive, and providing the necessary
functionality safe manner, dependably, quickly, and at the
least possible cost by removing irrelevant costs in the
various project phases is critical. Value engineering of large
capital projects often results in a cost reduction of at least
10%.
2.3 Utilization of Value Engineering in Indian
Context
Neetu B. Yadav et al. (2013) Value engineering, as quite a
productive and innovative method, This must be
acknowledged at all layers of project organizationBecause it
is more of a management activity than technical expertise,
the term "value management" is now used in India rather
than "value engineering”. The author discusses the broad
notion of VE, as well as its origins by year evolution in the
Indian scenario. The relevance and critical function of the
construction industryisdemonstratedbyIndia'sspendingin
the construction field andinfrastructureprojects.Asidefrom
the enormous sums involved,theconstructionindustryhasa
wide range of construction projects including a big group of
stakeholders, resources, planning and construction
methodologies, and so on, implying a broader spectrum of
value management applications. Identify the characteristics
of the Construction sector, VE studies could be used to
classify and find ways to overcome vulnerabilities with
creative alternatives, resulting in increased productivity,
financial benefits, enhanced efficiency, good performance,
simpler layout, and optimum timeframe without
compromising the function of any project. A small portion of
the leftover cash from the construction field, which is
considerable, can beconvertedandutilized inotherareasfor
the country's economic overall development.
Pooja Gohil et al. (2018) Value Engineering is an
organizational strategy that aims to find the optimal process
improvement between a product's cost, dependability, and
productivity.VE isa uniquekeyproblem-solvingtool that can
help companies conserve money while still delivering high
performance and reliability. As per the Indian context, Five
Phase job Plan is used. It is not properly used in India, and it
is frequently mistaken with the principle of cost reduction.
2.4 Utilization of Value Engineering Affordable
Housing Project
A. Ganga Warrier et al. (2019) The Govt is on a goal to
address everyone's housing demand by 2022. The Pradhan
Mantri Awas Yojana has granted 5.1 million dwellings as of
today. A large part of this project is housing for the EWS
(Financially Weaker Section) and the LIG. At the national
level, the construction of millions of residences is predicted
to produce a considerable demand forresourcesand energy.
To save resources and energy at the absolute level,
substitute materials, constructability, and construction
strategies must be evaluated. There are various low-cost
housing tools available. It's difficult to select a single
technology for use across the country. As a result, research
should be conducted per territory to determine the most
relevant technology based on situation, place, geography,
locally existing resources, tenant preferences, cultural
difficulties, timeframe, expense, economy, and other
variables. Thermal insulation is also crucial for the
effectiveness of housing designs. Passive design techniques
may be beneficial in achieving heat transfer and lowering
energy performance. In other circumstances, however,
passive design alone is insufficient to provide the necessary
living comfort. As a result, researchneedstofocusonclimate
control solutions that utilize the least amount of energy
while simultaneously being cost-effective.
Jayraj Gohil et al. (2019) The Indian government faces
major difficulty in dealing with the dramatic rise of
urbanization, which has resulted in unaffordable housing
and substandard urban-dwelling conditions. The
increasing necessity for cheap housing inIndia isdriven bya
number of causes, includingIndia's continuousurbanization,
which is accompanied by a growing urban population.
Research explores numerous pieces of literature in order to
comprehend PMAY, a low-income housing scheme for all
residents in India, particularly those from the Weaker
Sections. The study highlights some of the key affordable
housing programs in India and assesses the effectiveness of
PMAY in providing cheap homes in the nation. The
government offers everythingithastomeethousingdemand
and supply.
Prashant Sharma et al. (2021) According to the 2011
statistics, the nation's existing housing deficitisestimated to
be at 19 thousand tons. Excesscostcontrol mustbemanaged
from the initial design stage until the project is completed.
Value engineering is a problem-solving technique that
reduces costs while conserving and enhancing quality and
productivity standards. The first example study was
presented with three choices, including employing sand
blocks instead of AAC blocks. Sand blocks provided similar

or slightly better uniformity at a lower cost, and they were
locally accessible material based on the site's location. The
usage of paver block pavement instead of RCC road was the
second option presented. It has been discovered that
substituting a material with identical functionality reduces
project costs while increasing the value of a project. The
second example study had two options, including the use of
Mivan shuttering instead of traditional shuttering. It was
discovered that using Mivan shuttering cut the 52 cent
reduction in constructiontime.whencomparedtotraditional
shuttering. The second option presented was to use CLC
blocks instead of 4-inch bricks because of their lightweight,
which helped to reduce the building's total burden. It's been
discovered that substituting a material with identical
functionality reduces construction costs while increasing
project quality.
Following is a list of authors who apply VE in especially for
low projects, based on a series of studies. Following Table-1
shows how many researchers used value engineering in a
specific affordable project.
Table -1: Implementation of Value Engineering by
Authors
Sr.
No
Scheme
Country Auhors
Jayraj
Gohil
et
al.
A.Ganga
Warrier
et
al.
Prashant
Sharma
et
al.
Laila
M.
Khodeir
et
al.
1 Pradhan
Mantri Awas
Yojana
India  
2
MukhyaMantri
Awas Yojana
India 
3
Affordable
Mortgage
Program
Egypt 
3. AFFORDABLE HOUSING
Houses that satisfy the needs of a family whose incomes are
insufficient to enable them to Obtaininga Low-CostHome on
the marketplace are often referred to as affordable housing.
Individuals, families, and the environment all have a core
need for decent housing, which is universally recognized. A
globally acknowledged guideline for housing affordabilityin
the USA is that housing costs should not exceed 30% of an
average household gross income. Owners' taxes and
insurance, as well as utility bills, are included in housing
costs. (“Vibrant Gujarat 2017”). "Housingaffordabilityrefers
to any shelter that fulfills some form of affordability
benchmark, which could be the family's average income,the
amount of a housing unit, or accessibilityintermsofEMI size
or ratio of house price to yearly income," according to one of
the most widely accepted interpretations of affordability
accepted by the Government of India (“Affordable Housing
for All, 2008”). Table-2 shows a categorization of housing
projects based on the MOHUPA ("Ministry of Housing and
Urban Poverty Alleviation") 2011 criteria.
Table -2: Suggestive Definition of Affordable Housing
Household
Budget
Minimum
Volume
of
Dwelling
Provision
of
Essential
Services
The
House's
Location
EMI < 30-
40% of the
homeowne
r's monthly
amount
*EWS* *Floor
area:
250 sq.
ft.*
Hygiene,
sufficient
water
supply,
electricity
, public
parks,
education,
and
medical
centers,
are
provided
primarily
within the
property
Within 20
kilometers
of a large
workplace
*LIG* *Floor
area: 300-
600 sq.
ft.*
*MIG* Floor
area:
600–
1,200 sq.
ft.*
Categories
of people

3.1 Need for Affordable Housing
1. Citizens have been compelled to live in slums with
degrading dwelling conditions as a result of
uncontrolled urbanization and increasing land
costs.
2. Accelerated urbanization is occurring in tandem
with an increasingly the metropolitan population
has exploded from 10.9 crores in "1971" to 32
crores in "2011", with 60 crores anticipated by
"2030".
3. Space and real property limits, as well as theimpact
on essential services likefreshwater,electricity,and
sewage, are all consequences of the increasedinflux
of population in urban environments. The
Department of Building forecasted a shortage of
18.78 million low - cost houses over the 12th
Scheme era, with 95 cents of them in the
economically weak and lower-income sectors.
4. A focus on affordable homes would not only
improve people's standard of living but will also
greatly raise the country's GDP.
3.2 Government role in Affordable Housing
The Indian government took the first measures in the
1980s and 1990s. After independence, the unavailability of
dwellings in the nation has expanded tremendously. As a
result, in 2004, the Indian government established the
Ministry of Housing and Urban Poverty Alleviation to
address housing requirements as well as programs aimed at
enhancing metropolitan quality. This ministry has been
engaged in a range of schemes and initiatives pertaining to
accommodation, employment levels, transit,healthcare,and
sanitation since its beginnings. Since independence, the
Indian government has implemented many housing
initiatives, as seen in Table-3 below
Table -3: The India government launched a number of
public housing initiatives
Sr
No
Specific Group Put in
Place
Government Scheme
E
W
S
LIG Urban
Slum
1  Started
in 1952
Integrated Subsidized
Housing Scheme for
Industrial workers and
Economically Weaker
Sections
2   Started
in 1954
Low Income Group
Housing Scheme
3  Started
in 1959
Village Housing
Projects Scheme
4  Started
in 1972
Environmental
Improvement of Urban
Slums
5  Started
in 1996
IAY
(*Indira Awas Yojana*)
6  Started
in 2001
VAMBAY
(Valmiki Ambedkar Aw
as Yojana)
7  Started
in 2005
Jawaharlal Nehru
National Urban
Renewal Mission
8  Redraft
in 2012
National slum
development program 
9   Started
in 2009
Rajiv Awas Yojna
10    Started
2015
Pradhan Mantri Awas
Yojana – Urban
4.VALUE ENGINEERING
Value engineering is a method of assessing an item's utility
in order to improve its worth without sacrificing its quality,
effectiveness, or efficiency. It's a methodical approach to get
the most value for the money at the cheapest cost while
maintaining the requisite level of quality and functionality.
The worth, purpose and life-cycle costs are the three main
parts of a value project
As Per the equation mentioned, we can increase the value of
construction items in following two ways
1. Improve the Project’s F and Q while keepingTandC
the same
2. Reduce T and C input without affecting F and Q
Value Analysis can be used at any step of the project
development process, although the best resultsareobtained
early in the process, during the design phase as shown in
Fig-1

Fig -1: The project's stages and their relationship to SAVE
International's predicted savings
4.1 Value Engineering Job plan
A job plan is a process of Value Management that is well-
organized and rational. It assists in identifying critical areas
of wasteful spending and looks out for new and innovative
ways to accomplish the same purpose as the actual part,
procedure, or resource. There are various job plans that can
be selected based on the project's feasibility and
specifications, including Five Phase (Standard), Six Phase,
Seven Phase, and Eight PhaseJobPlan.Majorresponsibilities
of each phase are shown in table-4.
Table -4: The India government launched a number of
public housing initiatives
Sr
No
Job Plan Phase Aim
1 Information Phase Obtaining background information,
reviewing client expectations and
demands, developing aims and
targets, way to implement, and
understanding actual prices,
including cost model
2 Function Analysis
Phase
To distinguish between primary and
secondary functions
3 Creative Phase To Generate a lot of creative ideas to
meet the study's objectives
4 Evaluation Phase During the review process, the
glaring ridiculous ideas developed
during creative activities will be
eliminated, the ideas will be
organized into clustering, then
reviewed in accordance with project
criteria, and the best combination of
ideas will be discovered
5 DevelopmentPhase Choose and organize the "correct"
value improvement alternative(s)
6 Presentation Phase Present the findings of the
investigation to a top executive
Fig-2. depicts the entire value engineering job planning
process.
Fig -2: Value engineering job planning process
4.2 Tangible Benefits of Value Engineering
The Following Fig-3 depicts the tangible benefits of VE
Fig -2: Tangible benefits of VE

5. CONCLUSIONS
Due to the sheer tremendous development of the metro
community, the demand for affordable housing isincreasing
rapidly, and government-sponsored alternatives, such as
housing schemes, cost a significant amount of money. This
becomes vital to apply new construction strategies such as
Value Management in complex projects, where expense,
profitability, workmanship, and timescale all play a big part.
The quality of affordable accommodation is poor due to the
use of low-quality materials, a lack of oversight, and a lack of
thorough research of readily sourced materials and
procedures, among other factors.Basedonthis,a technology
solution to increase the quality of affordable housing
developments must be developed. According to current
housing crisis statistics and the rate of housing supply
additions in the nation, the current housing scarcity is only
projected to worsen in the coming years.
Job Plan is a powerful method for finding and eliminating
waste in constructioninitiatives,resultinginlong-termvalue
creation. It has well-known merits, but it isnotimplemented
properly and is tangled up with the philosophy of cost-
cutting rather than value enhancement.
This paper finishes with an explanation of how Value
Engineering works and the advantages of using it in the
Affordable Housing Project of the construction industry
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